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1st tier, second tier, whatever. Affiliates should not allow their ‘lifetime’ accounts to be lost in a sale, or be forced into buyout. If I wanted to sell these accounts, I’d have gone for CPA in the first place. If I buy a home with rentors, they still there, I can’t just toss them out on their butts because it’s more conveinent for me. They have a contract with the previous owner, and I HAVE to uphold that contract, it was part of the house I just bought.
My newest website is designed to help new webmasters get started, its sole income will soon be second tier..
I also always do my best to search out an affi link for any program I intend to sign with.. heck professor, I’m makin some cash offa some of your referall links.. how do ya feel about someone selling my accout and you gettin crap for your efforts here at CAP?
grrr..
As this is a very current topic and all managers are interested in this, I will change the thread title to attract them to it.
Very interesting point Siouxzee. I can see why this would be a problem area in light of the fact that some programs don’t operate a second tier.
I agree it’s something that should be considered, but would suggest that in situations where the acquiring program doesn’t have a 2nd tier, that a “buyout” is offered based on x months profitability perhaps. Example: 12x the highest 2nd tier payment earned by the affiliate to that date.
Will be interesting to see what ideas come out on this.
Good point and good idea Simmo! but it needs to be in the original contract, alla the after the fact payouts I see are BS in my opinion! If they bought a casino that had second tier affiliates, they are now the proud owners of second tier affiliate accounts.
~ LadyH
Simmo, I agree but not just whether the receiving company has a tiered program or not. I had 6 2nd tiers with Integrity and only one of those produced on a regular basis (100+ each month). When it came time to map across to CR, the rule was that the affiliate had to be in my downline with CR to get them. That affiliate went to someone else.
There aren’t actually that many programs that don’t have a 2nd tier program of some sort. I also think it needs to be extended just a bit to include a minimum as long as the 2nd tier is actively promoting the casino. I don’t expect to be paid for deadbeat affiliates but I also think compensation should be available for active promotion.
Siouxzee wrote:I don’t expect to be paid for deadbeat affiliates but I also think compensation should be available for active promotion.Uhhh… Siouxzee, as an affiliate under you in most programs, I’m sure that you don’t see much activity from me…. IMO, the affiliate program may look at me under your tier structure and classify me as a ‘deadbeat’, but if I get the things done that I’m planning and working on – and you lose me as a tier, if I make a decent go, then you’d be really out of the referral income from me. So I think that once an affiliate is under the tier of another, thats where they need to be or the referring affiliate be compensated. It’s just what most of the affiliate programs say….”earn for the lifetime of your player”…. is it really the ‘lifetime’ or is it what the program considers to be the lifetime?
I’m taaard, but hope this makes sense.
As far as I see it the current practice of “buyouts” is pretty similar to shady tactics deployed by corporate raiders in the 1980s.
If the deals were based on fair assumptions for future earnings they would have to be made based on earnings in the past and a cumulative annual growth rate (CAGR) would have to be used to project future earnings. Furthermore, the cashflow from earnings would have to be discounted in perpetuity (for life) to arrive at a fair valuation of affiliate cashflow which is a going concern.Another point of view could be:
If you´re planning to take over an affiliate marketing outfit that has contracts “for-life” then you will have to take over their affiliates on those terms as well. [amen]
This needs to be a practical, constructive thread with suggested solutions.
The mergers are not a sinister thing, thay happen in any maturing industry. Ours is no exception, and ultimately, this will be good for us.
Dealing with well funded, stable companies is going to work in our favor.
In this thread we can try to arrive at some rational suggestions.
We cannot force programs to install 2nd tiers. I also do not know how difficult it is to map second tiers.
In the majority of merger announcements the multi-tier bit is usually ignored. That is the first problem and gets the affiliates irate from day one. The multi-tier is just as important to some webmasters as the players. That said, the gambling industry isn’t the only one to ignore it. Just ask the Rapid Satellite affiliates who were kicked out of the program after they decided to terminate all overseas affiliates.
For those programs that are merged into one that doesn’t support multi-tier then some form of compensation is due. Easiest way is to perhaps look at average earnings of a period of time, eg 6 months, and make a lump sum payment. Not ideal for everyone but something is better than nothing.
For those that already support a multi-tier, I fail to understand what is so difficult. If you can map players then you should be able to map sub-affiliates. Once again I think technology difficulties is being blamed when it shouldn’t. Somewhere in the old system the sub-affiliate is linked to the affiliate so what is so hard about querying the database to get this information and then updating the new one?
Dom, I do not think that suggesting companies uphold to the contracts that they purchase is impractical. The contract is still valid.. ever been sent to collections.. they buy and sell you 10 times a year, but you still owe..
~Lady H
